Is ARPU1; the right choice for wireless data-based communication services?

Communication services based on wireless data, such as Social Network Service (SNS) and Mobile Instant Messenger (MIM), developed rapidly with the advent of communication networks and smartphones. As SNS and MIM gradually replace voice and Short Message Service (SMS) communication, the revenue structures of mobile carriers also change into data. Although mobile carriers are still measuring their revenues using voice-based indices such as Average Revenue Per User (ARPU). The use of accurate indices and measurement is important, since revenue measurement determines the future developmental direction of businesses and industries. Therefore, this study analyzes changes in revenue sources in this age of data, the utility of ARPU, and the standards for data-based revenue calculations. The analysis shows that the utility of ARPU is very low, since it cannot reflect the growth of data services and the existence of multiple subscribers. Also, it was identified that services and subscribers should be redefined in consideration of data revenues. The results of the study propose measurement factors considering data-based revenue, which could be referred as standards for measuring diverse revenues.